Union Budget 2024: Modi’s Focus on Jobs, Infrastructure, Fiscal Health

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India’s Economy continues to exhibit dynamic growth and structural changes, signaling a robust and diversified economic landscape. From labor reforms to surging domestic demand, the country is navigating a transformative period marked by significant policy initiatives and market developments.

Union Budget 2024 Preview: Modi Aims for Growth, Jobs, and Fiscal Consolidation

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In the realm of finance, India is preparing to present the Union Budget 2024 on July 22. The Modi administration is expected to address key challenges in the agriculture sector, employment generation, capital expenditure, and revenue growth. Simplifying GST and reducing tax compliance burdens are likely to be prominent on the agenda.

Gig Workers Get a Boost: Social Security Nets Expand in India

In a move to enhance social security and labor reforms, the Ministry of Labour and Employment plans to strengthen the governance and administrative capacity of the Employees’ Provident Fund Organisation (EPFO) and the Employees’ State Insurance Corporation (ESIC). This initiative is set to lay the groundwork for extending social security benefits to gig and platform workers, aligning with the anticipated rollout of the Labour Codes next fiscal year.

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Moody’s Declares India the Asia-Pacific Growth Champion

Moody’s Ratings has highlighted India’s position as the fastest-growing economy in the Asia-Pacific region for the latter half of 2024, driven by strong domestic demand. The credit rating agency anticipates policy continuity post-general elections, with a sustained emphasis on infrastructure development and private sector investment.

Tax Relief for Research: NITI Aayog Aims to Ignite University Innovation

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NITI Aayog has proposed tax exemptions for state universities to bolster their research and development capabilities. By exempting these institutions from GST and income tax, the government aims to alleviate financial burdens, allowing for more efficient allocation of resources toward teaching, research, and infrastructure development.

Consumption Boom on the Horizon: India’s Rising Middle Class to Drive FMCG Growth

In the consumer market, N Chandrasekaran, chairman of Tata Consumer Products Ltd, predicts significant growth in India’s middle class, from 30% to 50% of the population by 2030. This demographic shift is expected to drive substantial opportunities in the fast-moving consumer goods (FMCG) sector, fueled by a young population, urbanization, rising disposable incomes, and growing aspirations.

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Skill India Mission 2.0: Empowering Women, Igniting Entrepreneurship

The Ministry of Skill Development and Entrepreneurship is set to train 150,000 women under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) in the first 100 days of the new government. This initiative will focus on imparting new-age skills and promoting apprenticeship, with an aim to engage half a million new apprentices and introduce demand-based financing solutions for skill courses.

Food Fight Frenzy: Big Brands Reclaim Territory

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Industry dynamics are also evolving, with large food companies regaining market share by making their products more affordable compared to smaller competitors. In the cement sector, top manufacturers are projected to increase their market share to 55% by March 2025 through expansion efforts.

Greener Cars, Higher Prices? India Tightens Emission Norms

In the automotive sector, stricter emission norms under the third iteration of Corporate Average Fuel Efficiency (CAFE) standards will require automakers to reduce carbon emissions by a third over the next three years, potentially increasing vehicle costs.

India’s Palm Oil Rush: Soaring Imports Signal Growing Demand

On the external front, India’s palm oil imports surged by 74% in May 2024 due to rising domestic demand, with total vegetable oil imports also seeing significant increases.

Overall, India’s economic landscape is marked by proactive policy measures, substantial market opportunities, and ongoing structural reforms, setting a strong foundation for sustained growth and development in the coming years.